Owning and operating a business is an investment of time and resources. With the amount of effort that it requires in order to start a successful company, many Texas business owners overlook the importance of planning for what will happen when they are no longer able to run the company. For entrepreneurs, estate planning also includes planning for the long-term security of their business.
Protection and continuity of operations
For many Texas adults, estate planning means deciding what will happen to personal property after passing and making decisions about potential medical care needs they may have in the future. These are important considerations, but it’s not sufficient for a business owner to simply draft a will. He or she will also need to create a succession plan, a document that outlines how a business will continue in the absence of the owner or founder.
When creating an estate plan, a business owner will also need to have an accurate value for all business assets. Part of this strategy may also include tax planning and steps for avoiding unnecessary penalties when transferring business assets. Depending on the wishes of the owner, an estate plan may also include instructions for the sale of the company.
A look at the future
Any business owner will benefit from looking carefully at his or her potential future needs. An assessment of the company, operations and other details will reveal what steps are necessary to create an effective estate plan. Seeking guidance from a knowledgeable estate planning attorney may be beneficial.